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We are a society of spenders and as credit card debt has increased from $8,000/person to $13,000/person in the past 4 years, or 16% annually, the need for life insurance is greater than ever. This rising need, coupled with higher life expectancies, have popularized the no-medical exam life insurance product over the past two decades. Competitively priced products have emerged over the past decade, offering affordable life-options to the average consumer.

You can buy "simplified issues" at your local bank, credit union, or insurance agent. These policies can only be sold, like most insurance products, by a licensed insurance professional.

A licensed professional is anyone who has passed the state life insurance exam and maintained there license with the state insurance commissioner's office. Without the proper state certifications, it's unlawful for unlicensed professionals to quote, or solicit and offer to sell life insurance. In recent years, with the repeal of the Investment Advisors Act of 1940 in 1996, Banks and Investment companies have aligned to propagate sales in their various markets. If your local bank or credit union employ individuals who suggest the purchase of life insurance, verify their license, as penalties for non-compliance include fines and/or a cease and desist order.

In addition to higher premium rates, the trade-off for the convenience of a no-medical exam policy is a limited amount of coverage.

You can buy a limited amount of life coverage, with a no medical exam policy, ranging between 250,000-500,000. Usually, the insurance is Term, a policy guaranteed to cover you for a specific period of time (as long as premiums are paid as agreed), although some companies offer no-medical exam whole life.

Whole life policies have maximum face values of 1,000-50,000 and require an applicant to pay premiums for the rest of their life. Make sure you analyze the cost of insurance with life expectancy. For example if an applicant purchases a policy at age 55, and the premium/cost is $50 a month for $10,000 of insurance, your cost is $600/year, and after 17 years of paying into the policy, you'll have exceeded the amount of benefit. You would have to die before 81 for the investment to be worthwhile.

The process of underwriting is simplified with a no-medical exam policy. Historically, life policies had multiple steps; your agent would ask upfront a series of questions to identify if you qualify, then the insurance company followed up with a medical exam,

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